Glossary

Glossary

Abandonment: As used in property insurance, prohibits the
insured from abandoning damaged property to the insurance company for repair or
disposal

Accelerated Benefits Rider: An adjustment (rider) to a life
insurance policy that allows for the early payment of some portion of the
policy's face amount should the insured suffer from a terminal illness or
injury.

Accidental Death Benefit Rider: An adjustment (rider) to a life
insurance policy that provides for payment of an additional cash benefit when
death occurs by accidental means. This amount depends on the value of the
policy.

Accidental Death Insurance: An Insurance poicy that provides
payment if the insured's death occurs as a results from an accident.

Accounts Receivable Coverage: Covers loss of sums owed to the
insured by its customers that are uncollectible due to damage by an insured
peril to accounts receivable records

Actual Cash Value (ACV): Cost to repair or replace damaged
property with materials of like kind and quality, less depreciation

Additional Insured: A person or organization for whom insured
status is arranged by endorsement

Advertising Injury: General liability coverage that insures
against libel, slander, invasion of privacy, copyright infringement and
misappropriation of advertising in connection with the insured's advertising of
its goods or services

Agent: An authorized representative of an insurance company.

Aggregate: The maximum amount an insurance company will pay
during the policy

All Risk Coverage: Property insurance covering loss arising
from all causes of loss except those that are specifically excluded

Annually Renewable Term: Term insurance that provides coverage
for one year and allows the policy owner to renew his or her coverage each
year.

Application: A form with the information needed for an
insurance company to underwrite and rate a specific policy

Assignment Assignment: The transfer of ownership of a Life
Insurance policy from one person to another.

Attained Age: Your current age. Your attained age is a factors
life insurance companies use to determine premiums.

Audit: A verification of the financial records, usually payroll
or receipts, of an organization to determine exposures and premiums

Automobile: A land motor vehicle, trailer or semi-trailer
designed for travel on public roads, not including 'mobile equipment'

Backdating: Making the effective date of a policy earlier than
the date of application. Backdating is often used to make the age of the
applicant lower than it actually was at the time of application so that he/she
can get a lower premium. State laws often set limits to this.

Bailee Coverage: Coverage on property left in the care of the
insured for storage, repair or servicing

Basic Limits: The minimum limits of liability that can be
carried by an insured

Beneficiary: The designated person set to receive the death
benefit if the insured should die.

Best's Rating: A rating system by A.M. Best Company giving the
financial condition of insurance companies

Binder: A temporary insurance policy that expires at the end of
a specific time period or when a permanent policy is written. A binder is given
to an applicant for insurance during the time it takes the an insurance company
to complete the policy paperwork.

Bodily Injury by Accident Limit: The most an insurer will pay
under Part Two of a Workers' Compensation Policy for claims arising out of any
one accident, regardless of how many employee claims arise out of the accident

Bodily Injury by Disease, Each Employee : The most an insurer
will pay under Part Two of a Workers' Compensation Policy for damages due to
bodily injury by disease to any one employee

Bodily Injury by Disease-Policy Limit : The most an insurer
will pay under Part Two of a Workers' Compensation Policy employee bodily
injury by disease claims during the policy period regardless of the number of
employees who make such claims

Bodily Injury Liability Limit: The insured is legally liable
for damages due to bodily injury, sickness, or disease, including resulting
death

Boiler & Machinery Insurance: Coverage for loss caused by
mechanical or electrical equipment breakdown, including damage to the equipment

Bond: A written agreement in which one party, the surety,
guarantees the performance or honesty of a second party, the principal
(obligor), to the third party (obligee) to whom the performance or debt is owed

Brands and Labels Endorsement: Property insurance coverage that
allows the insured to remove labels from damaged goods or mark the items as
'salvage,' provided the goods are not damaged in the process

Building Ordinance Coverage: Covers against loss caused by
enforcement or ordinances or laws regulating construction and repair of damaged
buildings

Burglary: Theft of property by forcible entry, which is
evidenced by visible signs, in a premises, by a person

Business Auto Policy: Auto Policy for businesses that includes
auto liability and auto physical damage coverages

Business Income Coverage: Insurance covering loss of income by
a business when operations are interrupted due to property loss that is a
covered cause of loss

Business Interruption Coverage: See Business Income Coverage

Business Owners Policy (BOP): A policy that combines property
and liability coverages for special types of small businesses

Cancellation: The termination of an insurance policy usually
before its expiration

Care, Custody or Control: An exclusion of liability insurance
which eliminates coverage for damage to property in the insured's care, custody
or control

Carrier: The insurance company which provides coverage

Cash Benefits: The Money that is paid to the policy holder upon
settlement of a covered claim.

Cash Value: The equity amount or "savings" accumulation in a
whole life insurance policy.

Casualty Insurance: Insurance that covers loss caused by
injuries to persons and the legal liability imposed on the insured for injury
or for damage to property of others

Catastrophe: A severe loss causing sizable financial loss

Causes of Loss Forms: The commercial property forms that define
the covered causes of loss for which coverage is provided. Commonly, there are
3 Cause of Loss Forms: Basic, Broad and Special

Certificate of Insurance: A document providing evidence that
insurance has been purchased

Claim: A request by a policyholder or a claimant for payment
under a policy of insurance

Claim Expense: Expenses of settling or investigating a claim

Claimant: The person presenting a claim

Claims Reserve: An amount of money set aside to meet claims
reported but not paid

Class: A group of businesses who have common or similar
exposures and are grouped together for rating purposes

Classification: The arranging or establishing of business
groups or categories for rating purposes

Coinsurance Provision: An insurance provision for property
coverages in which the policyholder must carry an amount of insurance that is
at least equal to a set percentage of the value of the property in order to
receive full payment of a loss

Collapse: Collapse of a building and collapse of personal
property within a building due to specified causes (such as weight of snow, ice
or rain). Does not include collapse due to design error or due to faulty
workmanship or materials if the collapse occurs after construction is complete

Collision Insurance: Provides for payment to a covered
automobile resulting from the striking of another object by a moving vehicle

Commercial General Liability Policy (CGL): A coverage which
protects business organizations against liability claims for bodily injury and
property damage. Those claims may be the result of events at your place of
business, from your business operations, the products or services you make or
do, communications or advertisements your business broadcasts

Competitive State Funds: State-owned and operated facilities
that write Workers' Compensation Insurance solely for that state

Completed Operations: A General Liability coverage for the work
of the insured that has been completed away from the business premises

Comprehensive Auto Coverage: Covers an automobile for loss or
damage for all causes except for those specifically excluded

Compulsory Insurance: Insurance that is required by law

Concealment: Failure to disclose facts which may void an
insurance policy

Conditional Receipt: Given to policy owners when they pay a
premium at the time of the application. These receipts bind the insurance
company, provided your policy is approved, but are subject to any other
conditions stated on the receipt.

Conditions: Things agreed upon in an insurance policy that
state the rights and the requirements of the insured and the insurer

Consequential Loss: An indirect loss such as the reduction in
value of property that is the result of a direct damage loss

Constructive Total Loss: Term used when damage to property is
more than the value of the property

*Contestable Clause: A provision in an insurance policy setting
forth the conditions or time period under which the insurance company may
contest or void the policy. After this time has lapsed, typically two years,
the policy cannot be contested. Example: Suicide.

Contingent Beneficiary: Person or persons designated to receive
the value of an insurance policy in case the original beneficiary is not alive.

Contract: An agreement between two or more parties with
characteristics of mutual assent, competent parties, a valid consideration and
legal subject

*Coverage: Coverage is just another term for Insurance. It can
be used to mean either the dollar amounts of insurance purchased ($500,000 of
liability coverage), or the type of loss covered (coverage for theft).

Convertible Term: A policy that may be changed to another form
by contractual provision and without evidence of insurability. Most term
policies are convertible into permanent insurance.

Countersignature: The signature of a licensed agent or
representative on a policy that is required to validate the policy

Cross-Purchase Plan: An agreement that provides that upon a
business owner's death, surviving owners will purchase the deceased's interest,
often with funds from life insurance.

Cumulative Injury: A type of injury which occurs from the
repetition of tasks over an extended length of time

Death Benefit: The amount of money paid to the beneficiary when
the insured person dies.

Decreasing Term Insurance: Term life insurance on which the
face value slowly decreases in scheduled steps from the date the policy comes
into force to the date the policy expires, while the premium remains level. The
intervals between decreases are usually monthly or annually.

Debris Removal: The cost of removal of debris from covered
property damaged by an insured peril

Deductible: The amount of loss which is paid or absorbed by the
insured prior to determining the insurance company's liability

Deposit Premium: The amount of premium required at the
beginning of a policy prior to the actual premium being determined

Depreciation: The reduction in value of property over a period
of time. Usually as a result of age, wear and tear, or economic obsolescence

Direct Damage: Causes of loss that produce direct and
straightforward property damage (without interruption in time or deviation in
space) from the cause of the event to the damaged property

Double Indemnity: Payment of twice the basic benefit in the
event of loss resulting from specified causes or under specified circumstances.

Driver Other Car Endorsement: An endorsement that can be added
to an automobile policy that gives protection while the insured designated in
the endorsement is driving a car other than the one named in the policy

Drop Down Provision: A clause used in Umbrella policies
providing that the Umbrella will 'drop-down' over underlying policy aggregate
limits when they have been reduced or exhausted

Earned Premium: The amount of premium that has been used for
certain periods of time

Earth Movement or Earthquake Exclusion: An exclusion found in
most property insurance policies eliminating coverage for earth movement or
earthquake, except ensuing fire

Effective Date: The date on which an insurance binder or policy
goes into effect

Employee Dishonesty Coverage: Coverage for theft of money,
securities or property by an employee

Employee Leasing: A staffing method which an employee leasing
company provides all or most of its client's employees

Employers Excess Indemnity Insurance: Insurance coverage
purchased by employers that do not subscribe to the Texas Workers' Compensation
law

Employers Liability Coverage: Part 2 of the Workers'
Compensation policy which pays on behalf of the employer all sums that the
employer becomes legally obligated to pay because of bodily injury by accident
or disease sustained by any employee of the insured arising out of and in the
course of his employment by the insured

Garage Liability Insurance: Insurance coverage for the legal
liability of automobile dealers, garages, repair shops and service stations for
bodily injury and property damage arising out of their business operations

Garagekeepers Coverage: Provides coverage to owners of storage
garages, parking lots and body and repair shops for their liability of damage
to automobiles left in their custody for safekeeping or repair

General Aggregate Limit: The maximum amount of insurance
payable during the policy period for losses (other than those arising from the
products - completed operations hazards as covered under the standard
commercial general liability policy)

General Liability Insurance: Insurance protecting businesses
from most liability exposures other than automobile and professional liability

Governing Classification: In Workers' Compensation Insurance,
the classification that best describes the workers' compensation exposure of an
employer's business

Grace Period: Period of time after the due date of a premium
during which the policy remains in force without penalty.

Graded Premium Policy: A type of whole life policy designed for
people who want more life coverage than they can currently afford. They pay a
lower premium rate that increases gradually over the first three to five years
and then remains constant over the life of the policy.

Gross Negligence: Willful and wanton misconduct

Gross Vehicle Weight (GVW): The weight specified by a
manufacturer for the maximum total loaded weight of a single vehicle

Guaranteed Term: A form of renewable term insurance that
remains in force as long as the premiums are paid on time. With guaranteed term
insurance, the insurance company cannot terminate the policy during the term.

Hired Automobile: An automobile whose exclusive use has been
temporarily given to another for a monetary sum or other consideration. The
business auto definition of 'hired autos,' however, includes autos borrowed
except those borrowed from employees or partners

Hold Harmless Agreement: A contractual agreement that requires
one contracting party to assume certain legal liabilities of the other party

Host Liquor Liability: Liability coverage for hosts of business
or social functions arising out of the serving or distribution of alcoholic
beverages by a party not engaged in this activity as a business enterprise

Improvements and Betterments: Additions or changes made by a
lessee at his own expense to property that may not legally be removed. Usually
covered under the tenants property coverage

Incontestable Clause: A clause in a policy providing that a
policy has been in effect for a given length of time (two or three years), the
insurer shall not be able to contest the statements contained in the
application. In life policies, if an insured lied as to the condition of his
health at the time the policy was taken out, that lie could not be used to
contest payment under the policy if death occurred after the time limit stated
in the incontestable clause.

Incurred Losses: The amount of paid claims and loss reserves
within a particular period of time, usually a policy year. Customarily computed
as losses incurred during the period, plus outstanding losses at the end of the
period, less outstanding losses at the beginning of the period

Independent Adjuster: A claims adjuster who provides adjustment
services to insurance companies but is not employed by them

Independent Contractor: An individual or company who has
agreed, in writing, with another party to perform a job or function on behalf
of that party

Inflation Guard Provision: A provision that increases the limit
of insurance by a specified percentage over a specified period of time to
offset inflation costs

Insurability: The condition of the individual wishing to be
insured, including their health, susceptibility to injury and life expectancy.

Insurance: A formal social device for reducing risk by
transferring the risks of several
individual entities to an insurer. The insurer agrees, for a consideration, to
pay for the loss in the amount specified in the contract.

Insurance Policy: The printed form which serves as the contract
between an insurer and an insured.

Insurance to Value: Insurance written in an amount equal to the
value of the property or which meets coinsurance requirements

Insured: The party who is being insured. In life insurance, it
is the person because of his or her death the insurance company would pay out a
death benefit to a designated beneficiary.

Insurer: The insurance company; Party that provides insurance
coverage, typically through a contract of insurance.

Irrevocable Beneficiary: A beneficiary that cannot be changed
without that beneficiary's consent.

Increasing Term Insurance: Term life insurance in which the
death benefit increases periodically over the policy's term. Usually purchased
as a cost of living rider to a whole life policy.

Joint Venture: A business relationship when two or more persons
join their labor or property for a business undertaking and share profits

Lapse: Termination of a policy due to the policy owner's
failure to pay the premium within the grace period.

Leasehold Interest: Property insurance covering the loss
suffered by a tenant due to termination of a lease because of damage to the
leased premises by a covered loss

Lessee: The person to whom a lease is granted

Lessor: The person granting the lease

Liability: The legal obligation to pay a monetary award for
injury or damage caused by one's negligent or statutorily prohibited action

Liberalization Clause: A provision within an insurance policy
that broadens the coverage if the insurance company offers a broader coverage
form within the first 45 days of coverage

Lien: An obligation that can be held by an individual who has
an interest in a particular matter or property

Life Expectancy: The average number of years a person is
expected to live based on a national average per age group, and other factors.

Life Insurance: Insurance coverage that pays out a set amount
of money to specified beneficiaries upon the death of the individual who is
insured.

Limit of Liability: The most an insurance company agrees to pay
in the case of loss

Limited Pay Policy: A type of whole life insurance designed to
let the policyholder pay higher premiums over a specific time period such as 10
or 20 years so that they won't have to pay any premiums for the rest of his or
her life.

Longshore and Harbor Workers' Compensation Act: A federal law
that provides workers' compensation benefits to employees of a vessel injured
in maritime employment - usually in loading, unloading, repairing or building a
vessel - but not applicable to crew members

Loss: The amount an insurance company pays for damages under
the terms of a policy

Loss Adjustment Expense: The cost assessed to a particular
claim for investigating and adjusting that claim

Loss Constant: A flat charge added to the premium of small
workers' compensation policies to offset higher loss ratios

Loss Control: A technique that is put in place to reduce the
possibility that a loss will occur or reduce the severity of those that do
occur

Loss Payable Clause: An insurance clause that authorizes loss
payments to a person or entity having an insurable interest in the covered
property

Loss Ratio: Percentage of losses incurred against earned
premiums

Loss Report: A form showing reported claims which provides
information such as the date of occurrence, type of claim, amount paid and
amount reserved for each loss

Loss Reserve: An estimated amount set aside for a particular
claim that has not yet been paid

Lost Policy Release: A signed statement by the named when the
insured wishes to cancel the policy, but has lost or mislaid the policy, which
releases the insurance company from all liability or losses

Medical: A document completed by a physician or another
approved examiner and submitted to an insurer (insurance company) in order to
provide medical information. This is usually done to determine insurability (or
lack of insurability) or is sometimes done in relation to a claim.

Medical Expenses: Reasonable charges for medical, surgical,
x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices,
and funeral expenses. What is considered reasonable is outlined in a policy.

Medical Payments, Auto: Coverage, which is optional, under an
auto policy to pay for medical expenses for bodily injury caused by an auto
accident, regardless of fault. Coverage for persons other than the named
insured and his or her family members is typically restricted to circumstances
when they are occupants of the insured auto

Medical Payments, General Liability: A general liability
coverage that reimburses others, regardless of fault, for medical or funeral
expenses incurred as a result of bodily injury or death sustained by an
accident

Mexico Coverage: Coverage which is sometimes provided under
automobile policies for the operation of an insured motor vehicle within
Mexico, usually limited to a stated number of miles from the U.S. border

Minimum Premium: The lowest amount of premium to be charged for
providing a particular insurance coverage

Misrepresentation: The act of knowingly presenting false
information.

Mobile Equipment: Equipment such as earthmovers, tractors,
diggers, farm machinery, forklifts, etc., that even when self-propelled, are
not considered as automobiles for insurance purposes

Monopolistic State Funds: States or Jurisdictions where an
employer must obtain workers' compensation insurance from a state fund or
qualify as a self-insurer, as is allowed in five of the states: North Dakota,
Ohio, Washington, West Virginia, Wyoming, Puerto Rico and the U.S. Virgin
Islands

Mortality Rate: The number of deaths in a group of people,
usually expressed as deaths per thousand.

Mortality Table: A table showing the incidence of death at
specified age groups.

Mortgage Clause: Property insurance provisions granting
protection for the mortgagee named in the policy. It establishes that loss to
mortgaged property is payable to the insured and to the mortgagee named in the
policy

Named Perils Coverage: A property insurance term referring to
exact causes of loss specifically listed as covered

National Flood Insurance Program: A federally funded program
established to make flood insurance available to properties located in
participating communities National Flood Insurance Program: A federally funded
program established to make flood insurance available to properties located in
participating communities

Nonadmitted Insurer: An insurance company that is not licensed
to do business in a specific state. The insurers may write coverage through an
excess and surplus lines broker that is licensed in these jurisdictions

Nonowned Automobile: In commercial auto policies, coverage for
autos that are used in connection with the named insured's business but are
neither owned, leased, hired, rented or borrowed by the named insured. The term
specifically applies to vehicles owned by employees and used for company
business

Nonsubscription: A Workers' Compensation term used in Texas
that refers to employers who choose to be out of the workers' compensation
system. Firms that are proven negligent in causing a worker's injury, can be
held liable in tort, since nonsubscribing employers waive the traditional
common law defenses available to employers subject to workers' compensation
laws

Original Age: The age you were when you bought an insurance
policy.

Other Insured Rider: The temporary addition to an insurance
policy, usually a member of the direct family.

Ownership: All rights, benefits and privileges under life
insurance policies are controlled by their owners. Policy owners may or may not
be the insured. Ownership may be assigned or transferred by written request of
current owner.

Occupational Hazard: A condition in the workkplace that
increases the chances of the an accident, sickness, or death. It usually will
mean higher premiums.

Occurrence: A continual, gradual or repeated exposure to
substantially the same general harmful conditions. General liability policies
insure liability for bodily injury or property damage that is caused by an
occurrence

Package Policy: A policy providing several different coverages
combined into one policy. Refers to a policy providing both general liability
insurance and property insurance

Payroll Limitation: A limit on the amount of payroll for
certain classifications used for the development of premium

Personal Injury: A General Liability coverage for insurable
offenses that cause harm, other than bodily injury, such as false arrest,
detention or imprisonment, malicious prosecution, wrongful eviction, slander,
libel and invasion of privacy

Personal Injury Protection (PIP): An automobile insurance
coverage mandated by law in some states. The statutes typically require
insurers to provide or offer to provide first-party benefits for medical
expenses, loss of income, funeral expenses and similar expenses without regard
to fault

Personal Property: All tangible property not classified as real
property such as contents

Policy: The printed document given to the insured, outlining
the terms and conditions of the Insurance coverage.

Policy Fee: A one-time charge per policy that does not change
with the size of the premium

Policy Holder: The person who owns a life insurance policy.
This is usually the insured person, but it may also be a relative of the
insured, a partnership or a corporation.

Policy Period: The term or duration of a policy including the
effective and expiration dates

Preferred Risk: A positive characterisic of someone seeking to
be insured. Usually means a better likely hood for long life, and usually means
a lower premium.

Premises: The location where coverage applies

Premises-Operations: A category of hazard ordinarily insured by
a general liability policy which is composed of those exposures to loss that
fall outside the defined 'products-completed operations hazard,' including
liability for injury or damage arising out of the insured's premises or out of
the insured's business operations while such operations are in progress

Premium: The agreed upon, payment made to keep an insurance
policy in force, usually a monthly payment.

Premium Flexibility: The policy holder's right to vary the
amount of premium paid each
month.

Primary Beneficiary: In life insurance, the beneficiary
designated by the insured as the first to receive policy benefits.

Primary Policy: The insurance policy that pays first when you
have a loss that's covered by more than one policy.

Pro Rata Cancellation: The cancellation of an insurance policy
with the return premium being the full proportion of premium for the unexpired
term of the policy, without penalty for early cancellation

Product: Items manufactured, sold, handled, distributed or
disposed of by the named insured or others involved with the named insured in
the course of their business. Includes containers, parts and equipment, product
warranties and provision of or failure to provide instructions and warnings

Product Liability: The liability for bodily injury or property
damage a merchant or manufacturer may incur as a consequence of some defect in
the product sold or manufactured

Products-Completed Operations: General Liability coverage for
liability arising out of the insured's products or business operations
conducted away from the insured's premises once those operations have been
completed

Professional Liability: Coverage designed to protect
professionals such as physicians and real estate brokers, against liability
incurred as a result of errors and omissions in performing professional
services

Property Damage: In the general liability policy, a physical
injury to property, resulting in the loss of use

Provisions: Details of an insurance policy which explain the
benefits, conditions and other features of the insurance contract.

Real Property: Real estate including buildings and vegetation

Re-entry Option: An option in a renewable term life policy
under which the policy owner is guaranteed, at the end of the term, to be able
to renew his or her coverage without evidence of insurability, at a premium
rate specified in the policy.

Reinstatement: Putting a lapsed policy back in force by
producing satisfactory evidence of insurability and paying any past-due
premiums required.

Renewal Policy: A policy issued to replace an expiring policy

Rents or Rental Value Insurance: Insurance that reimburses a
building owner for loss of rental income due to damage by an insured peril

Replacement: A new policy written to take the place of one
currently in force.

Representation: Statements made by applicants on their
applications for insurance that they represent as being substantially true to
the best of their knowledge and belief but that are not warranted as exact in
every detail.

Return Premium: The amount of premium due the insured should
the actual cost of a policy be less than the insured previously paid

Rider: An attachment to a policy that modifies its conditions
by expanding or restricting benefits or excluding certain conditions from
coverage.

Risk: The chance of injury, damage, or loss.

Robbery: Theft of property while force is used or threatened

Secondary Beneficiary: An alternate beneficiary designated to
receive payment, usually in the event the original beneficiary predeceases the
insured.

Short-Term Cancellation: Cancellation of an insurance policy
prior to the expiration date in which a penalty in the form of a less than full
pro-rata premium refund is allowed

Single Premium Policy: A whole life policy for people who want
to buy a policy for a one-time lump sum, and then be covered for the rest of
their lives without paying any additional premiums.

Special Causes of Loss Form: A cause of loss form providing
coverage from all causes of loss unless specifically excluded or limited

Specified Causes of Loss Coverage: Auto physical damage
coverage only for losses caused by the perils listed in the policy

Sprinkler Leakage Coverage: Coverage for property damage caused
by the accidental discharge or leakage of water from automatic sprinkler
systems or other fire prevention devices

Surplus Lines Insurance: Insurance written by insurers not
licensed in the states where the risks are located and placed with such
insurers under the surplus line laws of the various states. Before such
placements can be made through specially licensed surplus line agents and
brokers, state laws generally require evidence reported before some
predetermined future date ('sunset')

Time Element Insurance: A term referring to property coverage
for loss of earnings or income resulting from the inability to put damaged
property to its normal use

Term Insurance: Protection during limited number of years;
expiring without value if the
insured survives the stated period, which may be one or more years but usually
is five to twenty years, because such periods usually cover the needs for
temporary protection.

Term: Period for which the policy runs. In life insurance, this
is to the end of the term period for term insurance.

Third-Party Owner: A policy owner who is not the prospective
insured. The policy owner and the insured may be, and often are the same
person. If for example, you apply for and are issued an insurance policy on
your life, then you are both the policy owner and the insured and may be known
as the policy owner-insured. If, however, your mother applies for and is issued
a policy on your life, then she is the policy owner and you are the insured.

Transit Coverage: Coverage on the insured's property while in
transit from one location to another, over land

Umbrella Liability Policy: A policy designed to provide
additional protection against catastrophic losses covered under liability
policies, such as the business auto policy, commercial general liability
policy, watercraft and aircraft liability policies and employers liability
coverage. It provides excess limits when the limits of the underlying liability
policies are used up by the payment of claims and it drops down and picks up
where the underlying policy leaves off when the aggregate limit of the
underlying policy in question is exhausted by the payment of claims. It also
provides protection against some claims not covered by the underlying policies,
subject to a self-insured retention

Underinsured Motorists Coverage: Provides coverage for bodily
injury, and in some states property damage, for losses incurred by an insured
when an accident is caused by a motorist who does not have sufficient insurance
limits

Underlying Coverage: The insurance or coverage in place on the
same risk that will respond to loss before the excess policy is called on to
pay any portion of the claim

Underwriter: Company receiving premiums and accepting
responsibility for fulfilling the policy contract. Also, company employee who
decides whether the company should assume a particular risk; or the agent who
sells the policy

Uninsurable Risk: A person who is not acceptable for insurance
due to excessive risk.

Universal Life: An interest-sensitive life insurance policy
that builds cash values. The premium payer has control over how the policy is
structured. He has the flexibility to eliminate the premiums (essentially pay
up the policy and pay no more premiums) or have the premiums continue for life.
It is a matter of juggling three variables: the assumed interest rate, the cash
value and the premium payment plan. The policy is interest-sensitive, and if
interest rates change from the assumed interest, it will affect the other two
variables. In the past, many Universal Life Policies were structured assuming a
higher interest rate then was actually received, therefore, most of them have
under performed. If you have a Universal Life Policy, you should have it
evaluated to see if it needs
to have the premiums adjusted to get it back on track. A fourth variable that
has not been a factor but could be in the future, and the owner should be aware
of, is the Mortality variable. Universal Life policies are usually structured
assuming current mortality rates. The insurance companies reserve the right to
change those rates.

Unearned Premium: That portion of the policy premium that
represents the unexpired policy term

Uninsured Motorist Coverage: Provides coverage for bodily
injury, and in some states property damage, for losses incurred by an insured
when an accident is caused by a motorist who is not insured

Utility Service Interruption Coverage: Coverage for the loss to
an insured due to lack of incoming electricity which was caused by damage from
a covered cause of loss, such as a fire or windstorm, to property away from the
insured's premises - usually the utility generating station. Also referred to
as 'off-premises power coverage'

Vacancy Provision: Property insurance provision found in
commercial property policies that restrict coverage in connection with
buildings that have been vacant for a specified number of days, usually 60 days

Valuable Papers and Records Coverage : Coverage that pays the
cost to reconstruct damaged or destroyed valuable papers and records and
usually includes almost all forms of printed documents or records except money
or securities; data processing programs, data and media are usually excluded

Waiver of Premium: Rider or provision included in most life
insurance policies exempting the insured from paying premiums after he or she
has been disabled for a specified period of time, usually six months.

Waiver of Subrogation: Also known as 'transfer of rights of
recovery,' the relinquishment by an insurer of the right to collect from
another party for damages paid on behalf of the insured

Whole Life Insurance: Life insurance that is kept in force for
a person's whole life as long as the scheduled premiums are maintained. All
Whole Life policies build up cash values. Most Whole Life policies are
guaranteed as long as the scheduled premiums are maintained. The variable in a
Whole life Policy is the dividend which could vary depending on how well the
insurance is doing. If the company is doing well and the policies are not
experiencing a higher mortality than projected, premiums are paid back to the
policy holder in the form of dividends. Policyholders can use the cash from
dividends in many ways. The three main uses are: it can be used to lower or
vanish premiums, it can be used to purchase more insurance or it can be used to
pay for term insurance.

Workers' Compensation: Protection which provides benefits to
employees for injury or contracted disease arising out of and in the course of
employment. Most states have laws which require such protection for workers and
prescribe the length and amount of such benefits provided